In a statement, Nike said it routinely makes business decisions to withdraw products or services. “NIKE made the decision to halt distribution of the Air Max 1 Quick Strike Fourth of July based on concerns that it could unintentionally offend and detract from the nation’s patriotic holiday,” it noted.

Nike had previously confirmed that it had chosen not to release the shoe because it featured an old version of the American flag. That flag was introduced in 1777, at a time when black people could be legally enslaved, many indigenous people were being forced from their lands, and women and poor whites were marginalized in the newly created nation. While it’s widely known as the Betsy Ross flag, there’s no solid evidence Ross created the flag.

Since the recall of the shoes came to light, a backlash against Nike has ensued, mostly—though not solely—from the political right in the US, as people accuse the company of bowing to excessive political correctness and being anti-American. “Instead of celebrating American history the week of our nation’s independence, Nike has apparently decided that Betsy Ross is unworthy, and has bowed to the current onslaught of political correctness and historical revisionism,” Doug Ducey, governor of Arizona, tweeted. Texas senator Ted Cruz suggested a boycott of the company.

In the same series of tweets, Ducey announced that he had ordered the state’s commerce authority to withdraw all financial incentives the state had planned to offer Nike to build a new factory there. While Nike does most of its manufacturing overseas, it had recently revealed that it would construct a new US facility to manufacture its Air platform in the US. Goodyear, Arizona, is where the facility appeared to be headed. It’s not clear what other authority Ducey might have over the deal, though, since it is between Nike and the city, not the state.

In its statement, Nike did not clarify the status of its plans for Goodyear. “We already employ 35,000 people in the U.S. and remain committed to creating jobs in the U.S., including a significant investment in an additional manufacturing center which will create 500 new jobs,” it said. The company emphasized that it is “proud of its American heritage.”

In 2016, the flag was at the center of debate in Michigan after a school superintendent apologized for its appearance next to a pro-Trump banner at a football game, over concerns that white supremacist and nationalist groups had co-opted it as a symbolic rejection of the country’s increasing diversity. The flag is also widely used elsewhere, leaving it up for debate as to how the general public should treat it.

This story and its headline have been updated to reflect that StockX has halted sales of the shoe on its site. The story has also been updated with comment from Nike.

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